Aussies urged to blast $52 billion post Christmas debt with 0% balance transfer deals

According to recent figures by the RBA, Aussies are facing a post-Christmas credit card bill of $52.06 billion, bringing the average credit card balance to $4,365.

Rather than struggling to pay off their post-Christmas balance on their current card, Mozo Director Kirsty Lamont has advised Aussies to move their balance across to a new card with a 0% balance transfer deal attached.

“Mozo found a huge saving of $1,288 paying off the average December debt of $4,365 using the best balance transfer offer in our database compared with a regular interest-accruing card.” 

RELATED: Balance transfer cards explained, at last

Lamont urged cardholders looking for a balance transfer deal to consider the length of the interest free period being offered as well as any handling fees that might apply.

When Mozo’s experts crunched the numbers the NAB Low Rate card - which offers 0% interest for 24 months on balances transferred and a comparatively low annual fee of $59 - was found to offer the best value for an Aussie looking to blast their Christmas debt.

With this deal, the average $4,365 debt could be paid off in full over the 24 month 0% interest period if the cardholder was to make monthly repayments of just $182. By comparison, on a standard credit card, with the average interest rate in Mozo’s database of 17.35% the cardholder would be up for a whopping $1,288 in interest.

Lamont stressed that Aussies should compare their options, and choose a balance transfer deal that was right for their particular situation and budget. She offered a list of do’s and don’ts for those considering the balance transfer strategy:

  • Don’t use the card to make new purchases as you’ll be charged the higher purchase rate, not the 0% balance transfer rate.

  • Do choose a balance transfer card with an interest free period that will allow you to pay your debt off in full. You can use Mozo’s debt payment calculator to work out a timeframe that suits your budget.

  • Don’t forget to make your monthly repayments! Think about setting up a direct debit for an amount that will ensure you pay of the balance before your 0% interest period comes to an end.

  • Do remember to consider annual or handling fees when choosing a balance transfer deal. If your debt is smaller or you can make larger repayments each month, you might opt for a shorter term balance transfer, which often don’t have any handling fees at all.

Ready to say goodbye to your credit card debt? Check out Mozo’s switch and save calculator to see your options, or take a look at our balance transfer comparison below.

Credit card comparisons on Mozo - rates updated daily

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure.
  • Apply By 30 June 2021
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    Bendigo Bank Low Rate Credit Card

    0% p.a. balance transfer for 24 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    11.99% p.a.
    0% p.a. for 24 months and then 11.99% p.a. (2.00% balance transfer fee)
    $45
    -
    Go to site
    Details
  • Apply By 7 September 2021
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    Westpac Low Rate

    Enjoy a super low rate of 13.74% with 55 days interest free plus 0% balance transfer for up to 28 months at 1% BT fee. No annual card fee for the first year, $59 thereafter.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    13.74% p.a.
    0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)
    $59 $0 in the first year
    -
    Go to site
    Details
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    Defence Bank Foundation Credit Card

    Defence Bank Low Rate Credit Card offers a 3.99% p.a. 6 month introductory rate on balance transfers, purchases and cash advances. Up to 55 days interest free on purchases.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    3.99% p.a. for 6 months then 8.99% p.a.
    3.99% p.a. for 6 months and then 8.99% p.a.
    $45
    -
    Go to site
    Details
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    Mozo Experts Choice 2020
    American Express Cashback Credit Card

    Enjoy up to 6% cashback on eligible purchases in the first three months. Additional 1.5% cashback with American Express Shop Small Campaign (conditions apply). Complimentary perks and insurances. Eligibility criteria and T&Cs apply.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    20.74% p.a.
    No current offer
    $120
    Cashback Rewards
    Go to site
    Details
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    St.George Vertigo

    0% p.a. for 28 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. New cards only, Eligibility criteria and T&Cs apply. Offer ends September 28th 2021.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    13.99% p.a.
    0% p.a. for 28 months and then 21.49% p.a.
    $55
    -
    Go to site
    Details

^See information about the Mozo Experts Choice Credit Cards Awards

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